Minimum-Wage Work On The Decline: Report

Fewer Workers Are Doing This
NEW YORK, NY - AUGUST 26: A woman cleans a table at a donut shop as the windows are boarded-up in the Rockaways as people prepare for hurricane Irene which is expected to make landfall in New York City sometime late Saturday and early Sunday on August 26, 2011 in the Queens borough of New York. The Rockaways are under mandatory evacuation orders for tomorrow afternoon. While Hurricane Irene lost some of its power in open water north of the Bahamas, the storm is still packing 110 mph winds. (Photo by Spencer Platt/Getty Images)
NEW YORK, NY - AUGUST 26: A woman cleans a table at a donut shop as the windows are boarded-up in the Rockaways as people prepare for hurricane Irene which is expected to make landfall in New York City sometime late Saturday and early Sunday on August 26, 2011 in the Queens borough of New York. The Rockaways are under mandatory evacuation orders for tomorrow afternoon. While Hurricane Irene lost some of its power in open water north of the Bahamas, the storm is still packing 110 mph winds. (Photo by Spencer Platt/Getty Images)

Only 4.7 percent of all hourly U.S. workers were paid at or below the federal minimum in 2012, down from 5.2 percent of all hourly workers in 2011, the Labor Department reported on Wednesday. The total number of workers paid at or below the federal minimum declined by about 200,000 to 3.6 million workers.

It is unclear why these jobs are on the decline, but there are a couple of possible reasons.

The federal government has not raised the minimum wage since 2009. The economy has improved since then, so it's possible that employers have bid up wages to try to attract workers. For instance, the leisure and hospitality industry, which employs about half of all workers paid the federal minimum wage, has been adding tens of thousands of jobs to the economy per month, according to the Labor Department.

Fewer minimum-wage jobs do not necessarily mean workers have moved on to much more lucrative positions. Those in the leisure and hospitality industry still are struggling: The average worker in accommodation and food services made just $22,730 per year in 2011, far lower than the annual mean wage of $45,230, according to the Labor Department.

President Barack Obama has pushed for raising the federal minimum wage to $9 per hour, a figure some worker advocates say is still too low.

(Hat tip: CNNMoney.)

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